Question

# Which of the following is not a useful step in finding errors on the trial balance?...

Which of the following is not a useful step in finding errors on the trial balance?

a.Determine the difference between debits and credits and look for the amount.

b.Determine the difference between debits and credits, divide the amount by 2, and look for the amount.

c.Determine the difference between debits and credits, divide the amount by 9, and if it divides evenly, look for a transposition or slide error.

d.Determine the difference between debits and credits and change any account to make the trial balance correct.

THE ANSWER IS "D"( WE CANNOT MAKE ADJUSTMENTS IN ANY ACCOUNT JUST TO MATCH THE TRIAL BALANCE. WE HAVE TO SEARCH FOR THE CORRECT ACCOUNT)

- WE CAN SEARCH FOR MISSING ACCOUNTS OR DOUBLE CHECK THE ENTRIES AFTER DETERMINING THE DIFFERENCE

-USUALLY THE AMOUNT IS POSTED IN THE WRONG COLUMN , THEREFORE THE DIFFERENCE WILL HAVE A DOUBLE EFFECT . SO TO FIND THE CORRECT AMOUNT WE DIVIDE IT BY 2 AND THEN FIND THE AMOUNT IN THE ENTRIES.

-TRANSPOSITION ERROR MEANS WHEN 2 DIGITS ARE REVERSED AND TH DIFFERENCE BETWEEN THE CORRECT AND THE WRONG AMOUNT IS DIVISIBLE BY 9. WE CAN ALSO USE THIS METHOD WHEN THE DIFFERENCE IN DEBIT AND CREDIT IS DIVISIBLE BY 9.

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